Home shopping

Multimedia home shopping continues to grow

Company Profile

2 Company Profile

Home Shopping Europe: The Company at a Glance

Established in 1995 as HOT – the Shopping Channel (Joint Venture by Pro7 and

Quelle); today: multimedia home shopping company with five shopping channels, online

shop and mobile shopping devices

1995 – 2012

0800

29 888 88

More than 2,600 employees:

More than 700 employees in Germany, Italy and Russia

+ 1,910 service providers (Call Centers, Logistics)

Reception: in almost every household in Germany, Austria and Switzerland via satellite,

cable, DVB-T, IP-TV and Hbb-TV; range within Italy and Russia is under development (in

Italy: already around 70 %)

Revenue 2011: 470 million Euros (+ 7 %)

Free customer service: 24 / 7/ 365 through all contact media

High-performance, reliable and fast logistics

3 Unternehmenspräsentation

International Shopping Channel Family

4 HSE24 Company Profile

Continuous growth

HSE24 Netsales 2007 - 2011 in Euro m

Company Profile 4 * Compound annual growth rate (CAGR), Home Shopping Europe GmbH, 2007 - 2011

5 Company Profile

The Teleshopping market is growing:

new media supplement the sales channels

• Teleshopping sector growing at an

average of 7 %

• Revenues: € 1.5 billion in 2011

€ 2 billion in 2016

• Doubling of on-line sales to € 600

million in 2016

• Additional growth through new media

sales channels

• Linear programme and ordering by

telephone will still be used on a priority

basis

Source: Goldmedia Study „Future of Teleshopping“, 2011

6 HSE24 Company Profile

Teleshopping: the 3rd pillar of the German TV market

• Teleshopping:

A major player in the German TV market

The third pillar in the TV scene alongside public

service and private TV broadcasters

2010 revenues around € 1.36 billion – still

bigger than the Pay TV market

One out of ten Germans buys products through

teleshopping

TV shopping as an important economic factor:

successful business case with 6,600 jobs and

stable growth of revenues

• HSE24 - No 7 among the largest private

broadcasters

Company Profile 6

*Estimate on the basis of the figures for the previous year. 2010 values not yet

available. Sources: VPRT, ALM, ZAW, ARD, ZDF, KEF and VPRT projections

Sources: Goldmedia Study „Teleshopping in Germany“, 2008; Horizont dated 30.09.2010: “The 20

largest TV stations in Germany“, Goldmedia Study „Future of Teleshopping“, 2011, VPRT sales

projections 2011


European teleshopping industry is growing

Turnover in key markets will increase from around EUR 4 billion in 2011 to over

EUR 5 billion by 2017

There are 68 teleshopping channels and around 14,000 jobs in core European

markets

Germany is the largest market; the second-largest European teleshopping

market is Great Britain, but the market saturation is already making itself felt;

the Italian market offers the greatest growth potential; France is a relatively

more static and smaller market

Above-average customer acceptance of new media

Source: Goldmedia Studies 2012, published on the Electronic Home Shopping Conference in

Berlin, http://www.e-homeshopping.org/home

2011 2012 2013 2014 2015 2016 2017

€ 3.8 bn

€ 5.3 bn

€ 1.4 bn € 1.7 bn

€ 0.4 bn € 0.9 bn

€ 1.7 bn

€ 2.4 bn

€ 0.23 bn

€ 0.26 bn

HSE24 wherever you are: Smartshopping 2012

9

HSE24 is the address for modern home shopping

Cross-Promotion

• the first home shopping company with an international teleshopping channel family and

systematically networked sales platforms

Umbrella brand HSE24

Interactive

and mobile TV Online Print

Live-Streaming,

Video-on-Demand

Customer Magazine,

Newsletter

HSE24 in GER,

AUT, SUI, ITA

Company Profile

10 Company Profile

Business Case

• Products: attractive and in great demand

• Entertaining and emotional: on TV and online, via mobile, tablet,

video on demand and Hbb-TV

• International Shopping Channel Family: five TV channels, 24

hours/365 days

HSE24, HSE24 EXTRA, HSE24 TREND, HSE24 Italy and

Shopping Live in Russia

• Precision: commitment and performance

How it works:

• Salestainment: generating purchase demand live

• Sales: oriented to demand and stock available

• Customer dialog: active information and communication 24/365

• Excellent service

Programme/

Sales

11 Company Profile

Teleshopping ist a complex business model

Purchasing/

Planning Distribution Service Production Logistics

Supplier Shopping Channel Customer

Product

Expert Guest

Show

Marketing

Sales

Price

Brands

Quality

Assurance

Availability

Internet

DVB-T

Satellite

Cable

Studios

Technical

Systems

Returns

Management

Warehousing

Delivery

Service

CRM

hse24.de

Call Centers

Company Profile 12

HSE24 Produces Programmes for All Age Groups

Sexes Age structure

*An active customer is a person who has placed at least one order in the last 12 months.

Average:

57 years

Source: Home Shopping Europe GmbH, Jan. – Dec. 2011

• About 8 million people have already purchased at HSE24, which is over 10% of all German citizens

over the age of 18.

• 1.4 million active* customers in Germany, Austria and Switzerland

• Mainly women, average age 57, married, living in two-person households

13 Company Profile

HSE24 – Growth Potential Today and in the Future

• Core target group: women 40-69 years

• An affluent target group with a substantial

potential representing 42% of the overall

population*

• The average age within the population is

continuing to increase

• The group of silver or best agers commands

significant financial means

• The plus-50 group is becoming the most

revelant group of viewers

Sources: *,** Statistisches Bundesamt, 2011

Age Structure 2010

in Germany

Men Women

**

thousand thousand

14 Company Profile

HSE24: Purchasing & Planning

Purchasing/

Planning Distribution Service Production

Programme/

Sales Logistics


Product

Expert Guest

Show

Marketing

Sales

Price

Brands

Quality

Assurance

Availability

Internet

DVB-T

Satellite

Cable

Studios

Technical

Systems

Returns

Management

Warehousing

Delivery

Service

CRM

hse24.de

Call Centers

The Ideal Teleshopping Product

stand for innovation

are suitable for TV

have features requiring explanation

are exclusive

15 Company Profile

offer the customer suprising solutions

are appropriate for the target group

are suitable for mailing

come in the price range from approx 20 -

1,000 Euro

Products particularly suitable for sale by HSE24

• 20,000 different

products a year

• More than 50% of all

products are on air for

the first time

Fashion, Jewellery, and Cosmetics designed for our customers

16 Company Profile

Assortment Shares by Product Groups in D/AU/CH (floor sales)


17 Company Profile

Brand Strategy with Star Quality

18 Company Profile

Strong Brands at HSE24

19 Company Profile

HSE24: Programme & Sales

Distribution Service Production Logistics


Availability

Internet

DVB-T

Satellite

Cable

Studios

Technical

Systems

Returns

Management

Warehousing

Delivery

Service

CRM

hse24.de

Call Centers

Programme/

Sales

Expert Guest

Show

Marketing

Sales

Purchasing/

Planning

Product

Price

Brands

Quality

Assurance

20 Company Profile

On Air Mask – Clear and Informative

Insert and show logo

HSE24 service- and order hot line

HSE24 Shop URL

Station logo

Programme info bar

Product info graphic with

name, short description,

order number and price

of article

21 Company Profile

Expert Guest in Sales Show

• Supplier delegates an expert to the show for his product

• Product expert and presenter form an ideal selling team

• Entertaining presentation of technical knowledge – with competent advice and expertise

• Expert guest advises customers during and after the show: live, on the phone or chat

22 Company Profile

Call-In

TV

Live

Streaming

Video on

Demand

Newsletter

Chat

Online Counseling by

Experts

Call Center

Customer Data

Customer Info

Counseling TV-Show

Crawls

Teletext

Mailings

Customer-

Magazine

TV-Mail

Clubs

Lottery

Direct Marketing

Order

Processing

Customer

Requests

Customer

Feedback

Ads

Radiospots

Imagespots

Show-Adver-

tisement

Classic Advertisement

Meet & Greet

Cross Media for Excellent Customer Management

23 Company Profile

Production

Distribution Service Programme/

Sales Logistics


Expert Guest

Show

Marketing

Sales

Availability

Internet

DVB-T

Satellite

Cable

Returns

Management

Warehousing

Delivery

Service

CRM

hse24.de

Call Centers

Purchasing/

Planning

Product

Price

Brands

Quality

Assurance

Production

Studios

Technical

Systems

24 Company Profile

TV Production on the Spot, from One Source

Ismaning

• 3 studios with an overall area over 1,000 m2

• 1 outdoor set for flexible production of all formats

• 8 cameras in remote operation by joystick and

three manned cameras

• 3 command centres with digital video consoles

• Production server with approx 17 TB memory for programme feeds, images and

product packshot recordings with more than 40,000 video clips

• Video server with approx 1,800 hours recording capacity for broadcasting

• Digital copy generator network for on-air product screens

• 3 online editing workstations for cutting trailers and playout editing

25 Company Profile

Distribution

Service Programme/

Sales Logistics


Expert Guest

Show

Marketing

Sales

Availability

Returns

Management

Warehousing

Delivery

Service

CRM

hse24.de

Call Centers

Purchasing/

Planning

Product

Price

Brands

Quality

Assurance

Production

Studios

Technical

Systems

Distribution

Internet

DVB-T

Satellite

Cable

26 26

Smartshopping multi-channel store:

The right offer at any time and anywhere

Company Profile

27 27

27

• „Live now on TV”: the current programme of the family of channels at a glance.

• “TV-Programme”: overview of all products, product information and programmes

for the selected day – For the next/last 7 days.

• Via Push News the customer can set a reminder for his/her favourite programme.

Highlights of the app

Company Profile

28 28

• Initial view for all product specials

• Order confirmation

• Current programmes for the next/last 7 days

• Livestream

• Article number search

Highlights of the app

Company Profile

29

• The Teleshopping shopping experience: your purchase request is executed directly via the

remote control without a media break

• Availability of HSE24, HSE24 Extra and HSE24 Trend.

• Channel switching with a preview function and split screen.

• Top offers from every station at a glance.

• All product descriptions, product and show videos on demand.

HbbTV – Highlights

Company Profile

30 Company Profile

Service

Distribution Production Programme/

Sales Logistics


Expert Guest

Show

Marketing

Sales

Internet

DVB-T

Satellite

Cable

Studios

Technical

Systems

Returns

Management

Warehousing

Delivery

Service

Purchasing/

Planning

Product

Price

Brands

Quality

Assurance

Service

Availability

CRM

hse24.de

Call Centers

31 Company Profile

HSE24: The Customer is King

• 10 million parcels shipped in 2011 • 13.8 million calls in 2011

Calls received in D/AU/CH (daily) Parcels shipped in D/AU/CH (every weekday)

2011 2011


32

Always available in country-specific Call Centers

Moscow

Company Profile

33 Company Profile

HSE24: Logistics

Distribution Service Production Programme/

Sales


Expert Guest

Show

Marketing

Sales

Availability

Internet

DVB-T

Satellite

Cable

Studios

Technical

Systems

CRM

hse24.de

Call Centers

Purchasing/

Planning

Product

Price

Brands

Quality

Assurance

Logistics

Returns

Management

Warehousing

Delivery

Service

34 Company Profile

Logistic Processes Fulfilling Demanding Targets

Logistic Strengths of HSE24

Success Parameters

Customer Expectations

Service Quality Low

Costs

Reliability in Supply

Returns Management

Flexibility in Supply

Quality Assurance

Delivery Times

Supply Features

Scalability IT-Systems Transparency Innovation Reliability Consignments

tailored

to Teleshopping

Home Shopping Europe GmbH

Corporate Communications

Münchener Straße 101 h

85737 Ismaning

Tel. 089 – 9 60 60 308

E-Mail: [email protected]

www.hse24.net


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Home shopping